Gesamtkonzerns

Gesamtkonzern is a term used in German accounting to denote the entire corporate group under common control, comprising a parent company and all subsidiaries that are included in the group’s consolidation. The Gesamtkonzern represents the economic unit whose financial position and performance are presented in the Konzernabschluss, the consolidated financial statements. The concept is central to German accounting law (HGB) and is aligned with international standards such as IFRS, which prescribe how group financial information should be prepared and disclosed.

Scope and consolidation: Control is the key criterion for inclusion in the Gesamtkonzern. A parent consolidates all subsidiaries over which it has the power to govern both financial and operating policies, typically by owning more than half of voting rights or through other arrangements. All controlled entities are included in the Gesamtkonzern, with intercompany transactions and balances eliminated in consolidation. Investments in associates or jointly controlled entities are usually accounted for by the equity method, rather than full consolidation, depending on the level of influence.

Practical considerations: In large groups, internal reporting may use sub-consolidations known as Teilkonzerne for management purposes, but the statutory Konzernabschluss generally covers the Gesamtkonzern as a whole. The aim of presenting the Gesamtkonzern is to provide a true and fair view of the group’s assets, liabilities, earnings, and cash flows.